>> you will no it really quickly. stuart: i am told he did not shower very often, they use a lot of acid and was a constituent kind of guy. >> steve had one speed. always on. stuart: that is it. dagen, call, it is all yours. connell: good morning. thank you for joining us. i am connell mcshane. dagen: far too many people are still signing up for unemployment. dennis: more tough talk out of north korea. mike baker will be here telling us how serious the u.s. should be taking all of this. dagen: the bank of japan with a surprise move that takes the page from ben bernanke's playbook. connell: everybody is doing it.

better regulation could have saved cyprus and whether we should be worried about some of these other so-called tax havens. we will have that and much coming up on markets now. ♪ speak very i am -- connell: straight ahead on markets now. thanks for joining us. dagen: lauren simonetti is on the floor of the new york stock exchange. >> the dow is higher. the s&p is higher. the nasdaq is in the red. apple and google under pressure.

we are just following the russell 2000, following the 2000 seeing this is a market that may be overbought at this point. the dollar to the upside. but again down today. we have commodities under pressure. gold down three days in a row. of course, gold, silver and copper, yesterdaa at their lowest level of the year. once again today. back to you. connell: the japanese want to keep printing yen like they are going out of style. the market does not seem to be worried. north korea. the latest, south korea saying the north has moved a missile with considerable range to its east coast. let's bring in mike baker, former cia officer.

i think the market is not worried about it. it is what we watch on a day to day basis. should investors be concerned? how serious should we be taking this threat out of north korea? >> we need to take it very serious. there is a history, there is a pattern with north korea. this is not an uncommon experience with them. they get frustrated. the young new leader, his father before him, his grandfather before him, they get frustrated with their lack of respect on the world stage that they would have a tantrum or whatever you want to call it. they are used to the u.s. doing something to placate them. connell: it is almost seasonal. we talk about the fact that, you

know, there are a number of issues. north koreans, this time of year, pull something like this. they want to get some food for their people and use it as a negotiation tactic. it is not the dad. it is not the grandfather. we do not know much about him. should we be more aggressive or should we pull back a little bit? >> it is a very good point. importantly, do not really understand fully the relationship he has. that is absolutely critical.

it is not just inside north korea. there is a commonality that we have to be very concerned about. connell: what does that mean? what do we do? what do we do? what does take it seriously in? >> he has no exit strategy they do not have a logistical capability. they could launch a couple different scenarios on the south. however, we have a couple different things going for us.

the chinese do not want stability. they do not want chaos on the peninsula. they will ride leverage on north korea just to keep that in a box. sometimes, north korea is acting not completely out of control of china. we have to take, we do have to take it very seriously. it is a very bad thing. i do not think they think we are operating from a position of strength. i do not blame them for rating it that way. connell: m baker thinks china is the key to this situation. always great to talk to you. dagen: walgreens clinics

expanding treatment to chronic illnesses. in-store clinics run by physician assistants and nurse practitioners are convenient ways for patients to receive care when their doctor is unavailable. the drugstore giant announcing the majority of it the hundred 70s take care clinics will provide the extended care. take a look at shares of walgreen's today. more bad news for, the leblanc, horrible. it is leaving a giant 20-foot gash in its side. the high wind at the mobile peer through shipyard workers in the water. one worker is still missing. shares of carnival is lower.

connell: maybe they cannot control it. a string of bad luck. let's put it that way. the president taking a pay cut. or is he? steve moore will join us from the "wall street journal." dagen: ben bernanke and janet yellin speaking today. tens of billions of dollars into the economy every month. what danger is it selling there and here? take a look at the oil market. down almost two dollars a barrel. ♪

♪ dagen: let us make some money

with. connell: charles payne. charles: universal display on this network. i have always traded it. it is up big today. here is the pros. they make what is called organic and big contracts with and sony. it is flexible. it is really amazing. here is the bad. execution is always sloppy. that is why the stock should be $50 a share. i am trading in that $30 a share. connell: you have done this a number of times. charles: maybe they felt twice.

380%, here is another thing, people worry about competition. apple will get into this business or so and so will get into this business. it has not really happened yet. stock acts great. three insider buys recently. 239 shares. they are buying and we are buying. if somebody was going to get involved in the business, when it its be a possible takeover target for somebody? charles: for about two and a half years. connell: usually just say that to stall for time. [ laughter ] charles: is a volatile stock. connell: thank you, charles. great answer, by the way.

let's go back to lauren simonetti at the new york stock exchange. >> lulu lemon continuing to take heads after their sheer bottom of yoga pants. it is up 1% as we speak. the chief product officer, she has been with the company for about five years, she is resigning as of april 15. we do know this is something analysts are very concerned about. they are downgrading the stock from outperform to sector perform. this does berkshire raises the level of uncertainty behind lulu lemon. they are also lowering the price target by $10. trading to under 65 right now. back to you. connell: any excuse to talk about lulu limited.

i really did not mean that. should just move on. dagen: what am i thinking about? that is a tease; right? the president's wallet will be a little lighter. steve moore on how this personal sacrifice is being received inside the beltway. connell: cyprus, a way that many thought was safe to hide their retirement money for years, that did not work out so well. big problems with many of these other financial centers around the world. we will talk about that coming up. before all of that, let's look at some of the markets here are world currencies today. the news out of japan is big. we will talk about all of that coming up. the local

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>> 19 minutes past the hour now. i'm jamie colby, this is your

fox news minute. democratic governor malloy expected to sign the nation's toughest gun control bill into law that could happen in the next hour. it's in response to the december's deadly school shooting in newtown. the bill adding more than 100 firearms to the state's assault weapons ban, creating a registry for dangerous offenders, and banning sales of high capacity ammunition magazines. in louisville, a employee shot and killed in the parking lot. the fbi is looking to question a person of interest in the shooting. officials say the victim worked for the u.s. army human resources command. the cost for alzheimer's is higher than cancer or heart disease according to a rand cooperation study. dementia care in the u.s. costs up to $215 billion a year, and an estimated 4.1 million americans have dementia, and that number projected to double in the next 30 # years. those are your headlines, not if

we keep working, dagen, got to use the mind. dagen: exactly. thank you so much. president obama announced he'll return 5% of the salary in support of federal workers who will be furloughed. 5% is off the 400,000 take home pay equals $20,000. joining us from washington, d.c., what say you about this, mr. moore? >> great to be with you. look, it's a smart political move by the president. he was coming under attack from a lot of republicans for not being, you know, susceptible to same cut in salary that federal workers are, and i think this is a shrewd political move. members of congress should take a 5% cut. i'd permanently cut that pay by 5%. just in terms of fairness, and i hate to use that word, but i think it's a very good policy.

dagen: in terms of the political momentum, how much does he get? when you say "shrewd," i think it means we'd have long lasting impact on the political pop pew particularity, think it will? >> maybe. it's a small gesture, but important. i applaud him for it. i'm not saying he's doing this for political reasons. i think he does feel kind of a brotherhood with the federal employees, and, look, i live in washington, d.c., people on my street are furloughed. there is the pain here, and i think the shared sacrifice is a kind of a good message, but the bigger message here, if i may -- dagen: absolutely. >> what are we in? at least the fifth or sixth week of the sequester, and this is really a story of the dog that didn't bark; right? the economy is doing just fine. we're not seeing all of the kind of thins like planes falling out

of the sky, and so this idea that the sequester is going to be some kind of armageddon has dagen: too early to say that, though, and is the economy really just -- >> no. dagen: why not? is the economy just fine, really? >> well, look, i mean, the economy is not just fine, but what i'm saying is there was not this big negative jolt from the fact that we have to cut, you know, 50 billion out of the federal budget, and i maintain this op the show before, but i actually think it was a positive thing, especially for financial markets, which have done so well in the last couple months giving investors a feeling that at least washington is going to do something, even if it's fairly small, about bringing this enormous overspending and deficit problem down. on balance so far, the sequester has been a good thing, and i a -- reject the idea of waiting six months, and when the cuts are tough, that's when pain is felt.

we can cut an agency, cut four or five out of the budget is not something to cause all sorts of problems for the american economy. dagen: whether it's a senate or president obama's idea, you know, on the trail talking about infrastructure spending. do you think it creates, if there is no visible hard impact from these cuts, do you think it leads to a shift towards more cuts, maybe not across the board, but at least wiser, more thought out ways of getting our spending down? >> well, i hope so, but i believe government spending is a negative for the economy. it's not a positive for the economy. dagen, your friends don't agree with that, but, look, i think every time the government spends a dollar, it's a dollar the private sector doesn't have to spend more efficiency, and so the more we cut government spending, the better, and, you know, by the way, when you have a trillion dollar deficit, the

$50 billion cut now is just the first baby step, absolutely. we have to cut more. i wouldn't, by the way, i would not turn the sequester off. any other cuts should come in addition to the sequester, not as a replacement of them. dagen: me and my friends, a lot of the friends don't think there should be government period. >> there you go. dagen: just turn us loose, have at it. >> we must be hanging out with the same crowd. dagen: national defense, and that's it. [laughter] >> amen. i want to hang out with you, see you later, take care. connell: be careful what you wish for; right? absolutely, just friends. dagen: i have friends all across the board. connell: indeed. dagen: actually, i don't have many friends at all. connell: so sad. more money to spend? people think that's the answer, speaking of everything else,

well, if you look at what's happening in japan, it's interesting because the central bank wants to print yep like crazy. the stock market likes it, but we'll talk about that coming up. dagen: your money offshore or why you should worry about those with money in certain island nations, how better regulation could save cypress, and what havens should we be worried about around the world? speaking of "around the world," here at home, today's winners on the s&p 500. ♪ ♪

connell: more to come on "markets now," and money keeps coming, this time, from japan, deciding to pump more yen into the economy. many thought cypress was a safe investment, and they last big time. well, they are not the only ones at risk. why regulation plays a big role in keeping your offshore money safe. is there another cypress out there? north korea a victim of cyberthreat. an anonmouse group, a hack on north korea's twitter account. more on that later. dagen: lauren on the floor with a 4r50g -- look at facebook, lauren? >> they are struggling to find positive territory, and facebook is not helping out. in an hour and a half, a major

announcement from facebook. the invitations sent out last week said see our new home on android. the speculation is one of two things could happen. facebook with htc has a facebook phone, but more likely facebook will be the home screen for android devices. either way, what we know is this: people use their mobile phones for three things according to a recent report. they message on them, web browse, and they check and update their facebook status. there's obviously the demand there for facebook on mobile. we'll see what the mobile event is. dagen: thank you. connell: european market numbers, and how they did before we talk about japan. the top of the screen, down 1%, paris, lowered by 7/10 of 1%, and settling by one-half of 1%.

europe down across the board in today's trading. dagen: we're doing it, japan's doing it, we're all doing it, printing money. japan out with a new bond buying program, aggressive plan to push money into the economy. $7 #5 billion a month it's buying in japanese government bonds. connell: if they are, it's all right for everybody else. you're always with us by satellite, so good to see you, thank you very much for coming in. they are doing this too, and worries about central banks or are there? what's your take? >> nay are marking up liquidity, and there's no european crisis, that's the good thing. we have a global crisis, and the japanese are doing it, and the problem with japan is think they they are get away with it. they are pursuing depression era

policies, and unlike the past, they now have a deficit. they buy japanese bonds, don't do it, the government will do it. the yen will go down the drain, our price targets for the yen is worthless, infinity. the yen cannot survive that. dagen: why isn't what japan doing boosting inflation around the world because you think japan -- the effect of our monetary policy here will have a more dramatic impact globally than what japan's doing? >> that's why we have a global cries is, different phases, and, indeed, the market doesn't take it seriously. gold is flat, down today. gold should be through the roof, but it's not the the reason it's not is because right now people think it's contained. we heard this word many times over. look at england, the bank of canada goes there, introduces gdp of the like, no exit any time soon. it's going to spread, and, yes, this is inflationary throughout

the globe, but at this stage, the market has concerns. >> sounds like david stockman a little bit here, a little accent. what were you going to say? dagen: assuming it's not made up. connell: come op. dagen: just kidding. why are we not japan? >> of course we're jay pap. we have similar challenges. our bond market lets us get away with the policies pursued. all they understand is that of the bond market. we'll get the act together, but only one there's the pressure to do so. difference of japan, we have a significant current account deficit so if and when the bond market tells us to get the agent together, the dollar is at a severe risk more than the euro or the yen in the short term. connell: rate spike and boom? >> not overnight. the risks are there. of course you can say they are going to wait until the risking materialized like you sell out from the housing market at the top, and the time is now?

connell: are you worried # about a big crash, just a disaster, or no? >> well, of course it can happen. we -- connell: low probability? >> the reason why we like currencies is because unlike the reputation, they -- the japanese yen had a move of 2.5%, a major move. in the target, you get that easily. we focus on currencies. risks are elevated, you want to be where you play the risks directly without taken on rates in the currency markets. dagen: is the downside greater in the u.s. government bond market more than the stock market? >> well -- dagen: if you have a spike in yield -- people do not fully understand -- >> we don't like the bond market, the stock market, i don't know -- i don't want to pick between the two evils here. the challenge with shorting bonds is you supply interest. shorting bonds -- they are not profitable -- dagen: but not owning -- >> to avoid it you have more it cash, dollar safe is not cash, so you diversify the daskt of

currencies, mitigate the risk, there's no risk free asset in the world, spread the eggs, and cash is not what it used to be. connell: any time you want to scare us, stop by. >> that's the on optimism side. connell: oh, good to see you. dagen: why cypress is not the only financial center you should be worried about. connell: we'll get into that, and there's four con firmed deaths of the new train of the bird flu. update on that developing story, and first, we talk about bonds and everything else. look today, live look at the ten-year treasury yield under 1.8%. we'll be right back on "markets now." ♪

had them show us. we learned a lot of us have known someone who's lived well into their 90s. and at's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

>> your fox business brief, and former enron ceo could be getting out of prison early. fox news confirming the resentencing negotiations with the justice department. dealing with the sentence of 24 years in federal prison with the role in the collapse of the energy firm. small business lending, meantime, shows signs of growth. small business loans rose in the fourth quarter marking the first quarterly gain since 2010, but

despite the year in gains, small business lending -- [inaudible] starbucks perking up expansion in southeast asia. they announced plans to open 200 stars in asia and in the philippines in four years. they operate more than 700 stores in six countries. that is the latest from the fox business network giving you the power to prosper. ♪

[ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. connell: okay, the safety of offshore accounts generally speaking in focus now with the melt down that we reported on over in cypress. just today, there's a new report out released by the consortium of journalists from around the world show offshore holdings of individuals and companies in more than 170 # countries and territories as well. dagen: the senior chairman of sullivan and cromwell with

experience deeper than anywhere in any industry, but particularly when it comes to banking and regulation. rog, good to see you, thank you for being here. >> thank you. dagen: why should we be concerned about the havens for offshore money? >> you know, i think we should be, and it's not just because they are tax havens and money laundering havens, but they are regulatory havens, and that is part of the real scandal of cypress. can you imagine a bank whose assets are worth less than 50 cents on the dollar? that's what the depositor haircut means, so what really happened there was a total failure of bank regulation. connell: what do you do globally? here we talk about regulatory system here in the u.s. in a minute, but what do you do about an issue like that with coordination? >> the best policy is referred to as name and shame. that means that regulators around the world say that banks

in this jurisdiction are unsafe, and that any bank in the principle jurisdiction whether it's the u.s., the u.k., switzerland deals with a bank like that at its peril. nobody takes that peril. dagen: that goes to the next question, is it not an issue of buyer beware, but depositor beware? related to cypress and the russian money in the banks there. >> it is depositor beware, and what is part of the shame of cypress and is that it's not just the russians. if you think about it a hard working cypress who put away a hundred ewe rows a week over the course of his or her career is subject to the haircut, british pension herbs in cypress are being haircut. yes, it was aimed at the russian plight money, but it hit others too. connell: talk about this country. you said you had your firm for

years, one of the biggest firms with wall street, figuring it out on the crisis, and they worked on a number of thing, dodd-frank on down. give us a score card, a state of wall street now from a regulatory perspective. where do you think we are? >> to use the baseball analogy in the, at best in the middle innings, the frame work is there. the building blocks. we have much stronger capital requirements and capital come plings, stronger liquidity compliance, and so much of the other there's quite a bit to go. dagen: what's next? >> i imagine we're going to see very soon the enactment of the enhanced standards that go beyond capital and liquidity, such things as single counterparty credit limits, early remediation, and we also are going to see regulations,

i'm sure, coming out from the fed on what is called loss ab sore bans, and those are probably two of the big ones and the derivatives transactions. connell: with that put together, hard to be encompassing in it, but as a country, are we better off because of all of this? >> oh, i think undoubtedly. we have a much more robust regulatory system. we have a much more robust supervisory system as well in the supervisory capacity, the regulators are far more scrutinizing than they ever have been. dagen: in a bigger picture question rather than banks and regulations and safety and soundness to this point, what are you worry about that the federal reserve and its monetary policy at this point is creating in terms of reinflation, in terms of assets that are becoming, oh, a little bit heady at this point. do you worry about a repeat of

at least some of the what got us into trouble in the first place? >> you know, there's clearly a danger there, but it is very hard for me to see that the federal reserve has been anything but on the right course. i think they have been absolutely right in trying to use monetary policy to stimulate the economy, and i hate to think where we would be had the fed not followed the course. connell: when you hear david stockman last weekend in the ne- "new york times," do you think that's crazy talk? >> they are thoughtful people, but everybody's entitled to be wrorng. dagen: saying david stack man's wrong? >> when he calls, and i have, you know, obviously, a lot of respect for mr. stockman, but the hyperbole he used about chairman ben bernanke, i think that is way off base. connell: over the top? well, every's entitled to their opinion, right about that, imlad

for yours today. pleasure to have you in a studio. >> my pleasure. connell: good to see you. thanks a lot. dagen: thanks so much. stocks now and every 15 minutes, lauren at the new york stock education change with more. >> five stocks now, all moving significantly, a broad picture of what's going on in the market today. consumer names here like macy's with an annual high, up 2.8%, and mcdonald's hitting an all-time lifetime high, up 1% over $is 100, positive comments from goldman on mcdonald's, but look at the -- csx down. transports down four days in a row. a tough session -- tough couple days for them as well. the toyota story is the bank of japan stimulus story. that stock up 4.5% right now. back to you. connell: lauren, thank you. dagen: china on high alert over

the bird flu after a fourth person died from the new strain, h7n9. connell: fox news in thrapts has the latest develop. how concerned should we be? >> well, this is a brand new strain of h7n9, a virus that previously was detected in bird, but never seen in human beings. chinese media report 11 people have gotten sick from this strain and four of them have dieded #. while the virus spreads from birds to humans, there are no confirmed cases of human to human transmission. that's the good news. the bad news is viruses are constantly mutating. there's always a chance this could turn into something to be passed from person to person. the cdc is monitoring the situation very closely. dagen: how likely is that? >> cdc officials say it's too early to tell, but they are not waiting around to find out.

listen. >> there's app international partnership that takes novel viruses of influenza that emerge internationally, assess them for their risk, and then go down the pathway towards vaccine development in increpts. we started the process now. >> the doctor says they can stop the process at any point if it turns out this virus doesn't pose risk to warrant vaccine production, but it's good to start early because vaccines can take a long time to make. back to you. dagen: thank you for that, from fox news in atlanta. connell: looking for ways to make money in the housing recovery, buying real estate, turns out, is not the only way. dagen: money made in the details; right, jeff flock? >> i have got a great one for you today. look at this stuff. take a look at this. this is going to turn into this. it is a revolutionary development in paint rollers, perhaps thee most revolutionary development since invented in

1940. i'll have the wisconsin imean that's doing it all when we come back, making money in housing without buying a house. stay tuned. ♪ york? a new property tax cap... and the lowest middle class income tax rate in 60 years... and a billion dollars in tax breaks and incentives. new opportunities for business. over 250,000 new private sector jobs were created over the last two years. and 17 straight months of job growth. with the most private sector jobs ever. lower taxes, new incentives, new jobs, now that's news. to grow or start your business in the new new york visit thenewny.com

connell: talked about north korea earlier in the hour, but here's another side of the thing over there, north korea's been hack. the hacking group, anonymous, reportedly did a number on the government and twitter account, statement coming from anonymous says they compromised 15,000 user records hosted by the north korean government. the group also repolicereplacing progovernment propaganda on the page of the picture of the dictator there. complete with a pig snout and drawing of mice mouse on his

chest. okay. text read "threatening world peace with nuclear weapons, wasting money while people starve to death." we don't think they really wrote that. the cyber threat, by the way, reported on all the time, continues next hour on "markets now," and the super security adviser will be here. stay tuned for that. dagen: companies benefit from the recent ri cover ri in the housing market. connell: the company, the distinction company of payment roller fabric in all of north america, jeff? >> it's a great american story. look at what we're surrounded by, paint roller fabric here. they run the company for how long, now? >> since 1995. >> here's the great -- i got to tell you about the innovation first. here's the old paint rollers. they are hard, solid, and this one collapses. >> correct.

>> how does it do that? >> instead of making a fabric that was spiral wound around the core how we traditionally supply fabric to the customers, we decided to create an innovation that created a fabric in a tube. >> now you shrink it down, put it in a container like that, give me the other one that's got -- look at that. >> that's vacuumed sealed. >> shipped anywhere in the world. it's the most significant invention since paint rollers were invented in 1940. >> we think so. supplying since 1946. >> walk with me, dan, this is how you benefit from the housing recovery without buying a house. look at individual companies like lumber liquidators compared to the housing index. they are doing great. sherwin-williams, tremendous, valspar, these are the companies that carry your product. >> yeah, sherwin-williams is our

largest customer, supply fabric at lowe's and home depot. >> fascinating. this is the knitting process right here, right now. in the machines, great to see textiles in america. i thought they died. >> they have not. we're a niche manufacturer supplying fabric all over the world, japan, china, i understand indonesia, australia, mexico. >> a fascinating american success story. what about what you put in the house, after you paint the walls? those had a nice run, year to date not so hot, but companies like e than allen, lazy boy up 50% over the course of the past yearment take a look. dagen: jeff, also pickup truck sales, you are definitely seeing construction activity in those numbers. connell: thanks, jeff. >> ford f-150.

dagen: that's right, reclaiming the number one spot, yeah, baby. connell: walgreen's critics going into the critical care business. the good doctor, manny alvarez are cheryl and dennis and whether to trust health to a drugstore clippic. dagen: a honey pot that tracks hackers, and you won't believe how many took the bait on this one. a fascinating interview ahead on "markets now." ♪ this is $100,000.

we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.

♪ dennis: i am dennis kneale. cheryl: hello, everyone. i am cheryl casone. jobless claims at a four-month high. one day before the monthly jobs

report. we have a guess that says do not fight the bank in japan, profit from it. dennis: the money trap a trap to catch hackers. cheryl: walgreens clinics going into the critical care business. doctor manny alvarez of head. dennis: the dow in the green despite some lackluster news. >> a disappointing number from the adp yesterday. as you can see, the dow is out by just ten points right now. the nasdaq is certainly weaker. it has been weaker all day. the transports are weaker for

the third day in a row. yesterday we had a day when all ten s&p sectors were in the red. not the case today. materials outperforming. with the job jitters, we have a pretty tight range for the dow jones. volume two the upside, however. a mixed market now. back to you. cheryl: thank you very much. a very busy day. a lot of that has to do with japan. an aggressive plan to double its money supply in the next few years. david, last november you were here. you liked japanese equities. i am curious how you feel now. speak i think that is the reason there is shock movement by the

bank of japan yesterday. they realized there is but they have to do to jumpstart the economy after two decades of this inflation and low growth. they are rivaling the federal reserve. i think it is good for risk asset. i think it will ultimately be good for japanese stocks. cheryl: the japanese market, overall, americans can buy the -- you look at the surge in stocks, honda, sony, toyota, they are stocks that are performing very well. >> absolutely. with a weaker yen, which is what

they are trying to do over there, that will lower their cost. americans are buying cars like crazy right now. honda has one of the best brand names. americans are looking for more fuel efficient cars. i think on that is an excellent way to take advantage of the market. cheryl: i was looking at some of your pics. you really like technology right now. apple and microsoft. first, let's talkkabout apple. >> once someone uses one apple product, they are more inclined to use another. at the end of the day, it is all about the $43 million in cash that they have. the $90 billion they have

overseas. it could be that palace for apple to jump ahead. cheryl: what about microsoft? >> everyone is fixated on a slow takeoff for windows eight. if you strengthen their service and business, most of us use microsoft office. at the same time, while you are waiting for prosoft, you have that nice 3% dividend, you have a much lower ten year bond rate. microsoft, you know, slow growth, but i think it could be very rewarding for shareholders. cheryl: we are looking at a potentially volatile day. adp missed the mark now the big jobs report coming.

>> i think people are bracing for some disappointment. i think the fed has our back. at what point do they stop bonds at 85 billion. if there is any weakness in the unemployment number, i think you can push that out. cheryl: the fed may come out once again. another rally. it is good to see you, david. thank you. ♪ dennis: thy birthright to infrastructure. the intense interest hackers have an invading our nations critical infrastructure systems. they connected a phony utility water pressure system to the internet. over a 28 day period, they recorded 39 attacks originating

from 14 different countries. the first one occurring in just 18 hours. we have the former white house security advisor to bush and obama. thank you for being with us, howard. >> my pleasure. dennis: do you think we are safe enough from hacking? >> well, we have been. the bottom line is, have we increasingly connected these devices to the internet? i am really surprised it was that low. when we see these automatic attacks take place, i would not be surprised if there were thousands of attacks that would be recorded over a longer period of time. dennis: which parts of our infrastructure are more vulnerable. which is especially vulnerable

to hacking? >> i think most of us worry most about the energy sector. the vast majority of technology that is running that was built back in the 50s. also, so many other sectors depend on the energy sector are. one of the things i had a meeting earlier this week with the engineering technology school for the energy sector and the information security is saying, those devices are now being connected. we need to bring these people together to better protect the energy sector. dennis: you wrote an article when you are in government. let's help raise awareness. i get the feeling you guys are doodling here and not doing enough. >> that had one of the things

from the congressional perspective. this goes back to 2003. here we are ten years later, congress still needs to pass legislation on information sharing. the information that government has get past to the owners and operators of critical infrastructure. everybody agrees we need to do something. how they get there is where we getting bogged down all the time dennis: a decade ago, we wrote a story warning about this. we are no better protected. china military targeted in just a six month period. they are staring above that could be used later for sabotage. how scared should we be? >> when we start talking about it, it has been ten years. why hasn't more been done?

there is a tremendous cost involved. the second thing is, when you look at the ceos and the board of directors who have put in a lot of effort for financial and business risk, they have not been trained. they are not aware of the risks. this is the part that is really scary. we have seen examples like this report a number of times over the years. a wake-up call for a few months and then people go around and try to put some focus on it. the next thing, and builds off-the-shelf. we really need to stay focused on this. dennis: america seems to respond only after a big crisis. i hope we get it right. think you for being with us. >> my pleasure. thank you. cheryl: banning bottled water

sales in massachusetts. rich: pepsi is okay. coke is okay. even sparkling is okay. they are banning the sale of leader size or less of regular old water. there are executives talking about what a bad idea it is. the fact that in a country with some proclaim prices, bottled water does not have any sugar or anything like that. we spoke about the economic effects. it is really just hurting local businesses. >> the retailers are the losers in this. you cannot tell me because they cannot bite bottled water in concorde anymore that they will forgo bottled water. >> fight really is not over yet.

they will bow to attempt to overturn this band. the citizens created the plan. they will vote later this month to overturn it. there is an effort to expand that fight to national parks. this is one of the national advocacy groups. they are attempting to use one national treasure to profit from another at the public's expense. parks can make clear that water like our parks is not for sale. when you talk about the environmental impact, they are not being recycled. just get your own bottle and fill it up. cheryl: good point. very good point. good story. dennis: eat your heart out, mayor bloomberg. turning atlanta into a silicon valley. a ceo who is putting his money

where his mouth is. cheryl: making money in las vegas. not by ambling, but by housing. the local

logo. cheryl: the dow pulling back. half the dow in the green, half the dow in the red. stocks now as we do every 15 minutes. >> shares are rocketing.

they will open up a store within a store in 1400 best buys by the end of that year. this is the next best thing. it sounds even better because sometime this quarter, samsung will start selling the galaxy for. best buy could please a place where they go for that. back to you. cheryl: you should hear charles payne going on and on about the charts that we just showed. dennis: it is time to make money with charles payne. charles: i think it's appropriate we show that best by chart. i think some firms put a $36 target on it. somehow all the information is out there.

everyone knows it. abercrombie and fitch. this is a basketcase. everyone remembers when this was a hot stock. it peaked at $83. they are 8.3% now. i think they might be in a pretty good turnaround stage right here. a lot of things do have to improve. not growing as fast. their margins have come down. this is really a value play right now. cheryl: that space has gotten so repetitive. charles: of course, you know it is difficult.

american eagle is hot for a little while and then it is not. trading at 11 pes. i am not a big fan. it was is christian dating just researching the company. they have a kid dude everywhere. [ laughter ] dennis: all right. cheryl: i just walk up fifth avenue. dennis: nice job, charles payne. cheryl: doctor walgreens. walgreens going into critical care business. dennis: atlanta could be the place the nation turns to for biotech research. the formal apple ceo driving this business venture. ♪

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♪ >> 22 minutes past the hour this is your fox news minute.

as much as $710 in hurricane katrina and rita aid in 2005 may have been misspent. they have found no evidence that the grants were used to actually repair and replace homes as it was intended. cost of care for alzheimer's patients higher than cancer and heart disease. fifteen though billion dollars a year. the number is projected to double in the next 30 years. in connecticut, democratic governor expected to sign the toughest gun control law and to stop the sales.

cheryl: thank you. they call them docs in a box. those critical care clinics. joining me now, we have doctor manny alvarez. i am curious what you think of this expansion. >> look, i think this is here to stay. i think this is something that is growing. places like cbs have been doing it for a long time. the imports to me is they partner with a medical center.

they take big regional medical centers and they partner with them. at the end of the day, it is okay for nurse practitioners to see you in the clinics, check your blood pressure, make sure your medication is okay. my fear is that when you have any of these independent clinics that is not affiliated or associated with a big clinic, you can fall through the cracks. cheryl: say i go in to get my diabetes issued and there are things missed, is that an issue? >> absolutely. even a nurse practitioner, they will be under the same exposure, if you will that any dr. in america has.

cheryl: they will make more money on it. or even doctors themselves. this is going to be the norm. you will have a lot of these primary care practices. when you have a multibillion-dollar corporation, then it makes sense. it is very practical. who will benefit at the end of the day? the patients. you can walk in and take care of your problems. cheryl: it will be a good business move. >> huge. huge business move.

cheryl: doctor manny alvarez. thank you. dennis: carnival stocks taking another hit. cheryl: to tech gurus who are putting their money where their mouths are. ♪ friday night, buddy.

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cheryl: the dow docking way off of session highs. turning atlanta into the biotech silicon valley. to attack entrepreneurs had on their plan did making money in las vegas. not on gambling, but by housing.

>> facebook, however, up more than 1%. may it is an htc phone. investors liking whatever this announcement is going to be ahead of the announcement at 1:00 p.m. eastern today. dennis: thank you very much. making atlanta the silicon valley of breakthrough. two people are putting up their own money to do it. we are joined by gail amelio and rob martin. let's start with the former apple guy.

why did you move? >> it is a business friendly climate. there are some great people who are interested in doing innovation in new areas of technology. there is great university programs. atlanta has all of those ingredients. you have georgia tech pop from which i graduated. a lot of great research is being done there. you have the university of georgia complex carbohydrate center. atlanta has something like 28 universities from which you can get a degree. dennis: silicon valley has all those great resources or even better ones, i am sure. more biotech and at one place

than anyone else. was it the fact of lower tax rates on your employees? >> there are no government additions. book, the biotech is at a stage right now where we need another epicenter. we do not have one in the southeast. that. we want to have more talent then it just boston and the san diego region. i think atlanta serves that purpose very well. dennis: you are calling for atlanta to become a center research. do you think that government incentives play a role in this or is a private pursuit?

>> it is a little bit of both. things that induce a lot of opportunity for anyone who wants to bid in without redistributing from one group to another. we see that kind of spirit in atlanta. we have cured a bunch of rat. we are going into human medical trials now. very excited about possibly wiping out a deadly eggs these that affects a lot of people. dennis: did atlanta come to you or did you go to them? >> we really went to them. there was a lot of reason to look there in the first place. we started doing the process. we saw that this really was a place that could be the future.

>> i grew up in the south. i have 3 degrees from georgia tech. i served on the board for about 12 years there. i am very familiar with the area. i endorse exactly what he says. i am very excited to be part of it spot is the cost for operation a lot lower in atlanta then it is in the silicon valley? >> a lot lower. rent is much lower. valerie. there is a lot of talent in the area that is really underutilized. dennis: really? >> we have a lot of opportunities there that you may not have elsewhere.

dennis: what about silicon valley having the best researchers? >> well, you know, nothing to take away from silicon valley. the emphasis is on the word silica and. things related to the computer industries and other network-based services that support those things. you have to go a little further north of silicon valley to be part of the biotech area. i really think that, as i said, there is room for a new epicenter. i think we need one in the southeast. i think atlanta is the perfect spot. dennis: i have to ask you, would you buy apple right now? >> yes. dennis: that is a great answer. thank you, gentlemen.

cheryl: we are getting some breaking news. the media office at the university of rhode island say authorities are need for a gunman on that campus. the suspect was spotted in a building where classes are held. they are evacuating the hall. law enforcement have surrounded the building. we will update you on any information that we get. some more bad news for carnival. strong wind left a 20-foot gash into the ship. the highway and baruch yard workers into the water. one worker is still missing.

gold has a bit of a losing streak. is it time to buy, sell or hold? >> jimmy fallon about to move in and replace jay leno. that is ahead in your media minute. ♪ ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience."

♪ >> hello, everyone. i have your fox business brief. economic uncertainty is no longer the top concern for top business owners. the requirement for the healthcare law is. 79%. the economy is under. convicted in may 2006 on 19 counts of securities fraud, conspiracy and insider trading. the electric is unveiling its new battery powered sports car. it will go into production in august. that is the latest from the fox business network. giving you the power to prosper.

♪

cheryl: ipo kicking off 2013 with a bang. surging 34% year-over-year in the fourth quarter. co-author of the ipo watch report is here. nice first quarter for ipos. a huge amount of deals in march. volumes are up, but values are a little suspect right now. >> we have seen the momentum carryover from 2012. we have seen some of that demand continue into the quarter. we had a good number of ipos. still not great. cheryl: ten deals, $1.8 billion. >> that is right.

the corridor had some different elements to it. january was a hot month. during slow down and then march became hot again, especially the back end of march. to see what would happen.waiting >> we have seen it slow for quite a while now. we have seen the markets open and shut and he quickly. >> toys "r" us one of the biggest examples. there seems like there is a bit of a concern about u.s. companies about when to go public. you are seeing a lot of international ipos. foreign listings coming into the united states. they are not afraid, but we are. >> we have seen a whole list of

things happening. you sell some of them, mind in the first quarter. we have seen a new interest in foreign companies looking to come back into the marketplace. cheryl: china, india, those are the usual suspects. >> a lot of companies around the globe looking at the u.s. cheryl: let's break it down by sectors. technology will be top on the list of such errors. >> we have seen a pretty good mix of sectors. we have seen healthcare, technology, old standard consumer companies. it is a pretty good mix. cheryl: even for companies, would we have so much concern here overall.

we have ceos think they feel overregulated. is different. the u.s. capital markets are still the most liquid i think what we are seeing is impotent sectors and with certain bennies. cheryl: thank you very much. dennis: it is a quarter till the top of the hour. we have stocks now. >> let me show you some stocks that caught my eye right now. one at an annual high end one at a time and annual low. jcpenney of about 1%. it did hit an annual low earlier today. we will start to see the home

furnishing store within a store idea within the next couple weeks. provera getting an upgrade i goldman sachs. that stock is up 4% right now. year to date, the stocks are all up in the double digits. united is up 25% since the start of the year. back to you. dennis: thank you. fallon. nbc has anointed jimmy fallon to take over the tonight show. is it the right man for the job? the ratings are down this season. off almost 6%. down 9% and the advertiser target. jimmy is the eight years old. the show has an average artist of 58. life after death. fox canceled in 2006.

sixteen episodes will premiere on may 5 on netflix. getting into original show production. tit for tat, now those suppliers are entering netflix business. shares down for today. time warner getting into the streaming business. just a week or so, here comes the first change. cheryl: good stuff. gold sitting at ten-month lows today. phil flynn is in the pits of the cme. >> it is bouncing back a little bit from that ten-month low on better than expected comments about the economy coming out of europe right now. there is absolutely no demand that gold demand has been hard hit.

the line is $1500 an ounce. if we take that out, the 12 year market in gold is over. i think it will be a tough sell long-term. short-term, obviously, gold continues to be underpar. back to you, cheryl. cheryl: he says, what are you talking about? one of the best plays out there. they are watching. dennis: buy a home in vegas. the reasons are ahead in the west coast minute. cheryl: we take a look at some of the winners over on the nasdaq. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s.

and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

♪ >> time for your west coast minute. hawaiian home prices are showing double-digit growth in the month of february. hawaii is now among the top five states for prices of an increase of 15.5% year-over-year. this is the biggest jump in seven years for the island. buying a home and renting in nevada is a great investment idea. the median sale price $115,000. average rent is over $1500 a month. a monthly profit of over $500 after taxes, repairs and a mortgage. finally, oregon beer the worst state in the united states when it comes to underemployment. a problem is mainly on the west

coast. nevada, california, washington state and arizona all have high rates. that is your west coast minute skype can you say west coast slacker? dunkin donuts has a new breakfast sandwich. it is a glazed donut egg sandwich. the glazed donut serves as a bond blanketing a fried egg. it cost three dollars, not including the $100,000 down payment for future heart surgery. tears are of almost two dollars or 2%. cheryl: maybe you should not follow but the big guys do. elizabeth macdonald is here with her on a line. she has been investigating this story. they have to be the smartest, richest people in the world. >> if this trend holds for the first quarter, this will mark

the fifth year that the hedge fund industry has led the performance of the s&p 500. that should give some encouragement to the viewer out there. i want to show you what his winners and losers are.

the word is out that, you know, they sold stock. that is not it. they are too cautious. they bought into the wrong you may be able to beat the big guys on wall street. cheryl: what are the big, you know, the reasons we think hedge funds have so much leverage is because they have access to research. >> they are still losing ground here in these trades which is surprising to me. >> yeah, you know, what the answer is from goldman sachs and credit sweep is the market events and they were burned in 2011, too cautious last year going into this year, but they are making the stock bets that are not panning out as we just showed you. >> liz, thank you very much.

>> sure. >> facebook home on android event kicks off, and live coverage and reaction with melissa and lori is coming up. >> before he lays eyes on it, the tech analyst explains why it's the most expensive learning experiences yet for facebook. ouch. melissa and lori are coming up next. stay with us. ♪

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>> good afternoon, welcome to a brands new hour of "markets now,". >> i'm melissa francis. the facebook event kicking off in minutes, the company's much hyped announcement live. >> the event has not started yet, but they think this move by facebook is already a big mistake. he joins us in minutes to tell us why. >> it has been a long road for the keystone pipeline, talking with the man who t